Big tobacco takes packaging fight overseas

Lateline has obtained evidence a former US ambassador to the WTO and a US congressman are lobbying against cigarette plain packaging.

Transcript

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ALI MOORE, PRESENTER: Big tobacco companies are increasing the pressure on the Federal Government over plain packaging of cigarettes.

Lateline has obtained evidence that a former US ambassador to the World Trade Organisation has been lobbying Malaysia to oppose the Australian Government's proposal.

Peter Allgeier says he's met a Malaysian Government minister as part of his efforts to derail the plain packaging legislation.

Lateline has also learned that a powerful US Congressman has joined the fight against the Gillard Government's latest plans to reduce smoking.

Steve Cannane has this exclusive report.

STEVE CANNANE, REPORTER: This is the public face of the tobacco industry's campaign against plain packaging.

And this is its private face. Peter Allgeier is a former US ambassador to the World Trade Organization and for eight years served as the Bush administration's deputy trade representative.

He now works here at the Washington-based consultancy CMN international.

This email was sent to a Malaysian official and has been obtained by Lateline. It shows that Peter Allgeier has been lobbying Malaysia to put pressure on Australia over plain packaging and refers to a meeting Allgeier had with Malaysia's Trade minister.

"There are several opportunities forthcoming for Malaysia and other like-minded governments to persuade Australia not to proceed.... One option is to raise concerns in response to Australia's notification to the WTO TBT committee, which meets on June 15-16.... A second option is to address this issue at the next WTO TRIPs Council meeting on June 7-8. ... A third option is to respond to Australia's request for comment on its draft legislation, which is open for comment until June 6."

MATTHEW MYERS, CAMPAIGN FOR TOBACCO-FREE KIDS: It's infuriating. It's infuriating that the multinational tobacco companies are trying to use their global political muscle to intimidate countries from protecting their citizens.

STEVE CANNANE: Matthew Myers has been an anti-smoking campaigner for 30 years, working with Republicans and Democrats in Washington to reduce tobacco use.

MATTHEW MYERS: Peter Allgeier has a long history of working in ways to intimidate other countries to back down from tobacco control measures. He led the Office of the United States Trade Representative's negotiations with Taiwan and Korea in the 1980s, including efforts to get those countries to back down on important marketing restrictions to kids.

So this is nothing new. And the firm he works for actually solicited the business of British-American Tobacco when the framework convention on tobacco control was being negotiated to try to get them to retain them to defeat tobacco control measures by using trade tactics.

STEVE CANNANE: Peter Allgeier turned down Lateline's request for an interview. He would not say how many tobacco companies he's representing, nor how many countries he's lobbying.

So what about Australian tobacco companies? Do they have any connection to Peter Allgeier's lobbying?

I've been told that corporate relations firms are lobbying countries like Malaysia to persuade Australia not to promote plain packaging. Are you involved in that in any way?

DAVID CROW, BRITISH AMERICAN TOBACCO AUSTRALIA (May 17): We're talking to loads of stakeholders right across the network and I'm sure it'll include the World Trade Organization because Australian Government has to also abide by its treaties on its global nature.

DAVID CROW: Actually, I think we're actually approaching them personally from BAT to talk to relevant organisations and stakeholders. Everybody, including the retail organisations.

STEVE CANNANE: And the campaign against plain packaging also includes senior US Congressmen.

In Peter Allgeier's email, he says, "Members of the US Congress also have written to the Australian Government outlining concerns about the implications of plain packaging for the integrity of Australia's trade commitments."

One of those Congressmen is Republican Donald Manzullo, who sits on the House of Representatives committee on foreign affairs. Congressman Manzullo has sent the Australian Government a letter criticising plain packaging. In it, he says, "Not only does it violate Australia's global trade obligations and undermine trademark protection, ... but it also has the negative effect of emboldening governments less committed to intellectual property right protection to dismiss global trade rules."

And Congressman Manzullo argues plain packaging will have negative health consequences. "... plain packaging legislation will likely lead to more counterfeit cigarettes, increased health risks of consumers and contribute to the growth of illicit products. From both a regulatory and health angle, plain packaging creates unnecessary hazards."

MATTHEW MYERS: This is about using the global economic power of a tobacco industry that always puts profit over health in an effort to intimidate the Australian Government. I hope they won't fall for it.

STEVE CANNANE: The Government plans to introduce its plain packaging legislation in the next few months.